China

Sinovel hit by over 50% profit fall

CHINA: Sinovel has forecasted a 50% decline in net profits for 2011, as a result of market price cutting and falling sales.

It said the sharp decline of net profits was first attributed to ferocious market competition, which reduced product sale prices, sales revenues, and gross profits.

Sinovel said the net profits stood at CNY 2.86 billion in 2010.

Additionally, the decline in sales and profit was also attributed to postponed construction of some wind farms. This was attributed to delayed government approval of the wind farms and cyclical fluctuation of the country’s macro economy.

Sinovel said the forecast announcement is drawn on the basis of preliminary estimates, and the official annual report of 2011 is yet to come.